E.l.f. Fraud Suit ‘Corporate Optimism’ Claims Shaved by Judge

A California federal judge shaved an investor lawsuit against cosmetics company e.l.f. Beauty Wednesday, keeping intact a claim over the CEO’s remarks about business being strong in an appearance on CNBC’s “Mad Money.”

Many of the statements cited by the plaintiffs in the US District Court for the Northern District of California were “inactionable puffery and corporate optimism,” or were made earlier in 2024 before sales dropped, Judge Eumi Lee said.

“For the most part, these allegations fail to establish that the statements challenged in the complaint were false or misleading,” Lee said, partially granting e.l.f.'s motion to dismiss.

But ...